Airline stocks continued to decline, with China Eastern Airlines (CEA) recording a cumulative drop of over 35% within the month. As of press time, China Eastern Airlines fell by 6.07%, trading at HKD 3.56; Air China (00753) dropped by 5.16%, trading at HKD 4.78; China Southern Airlines (ZNH) declined by 4.21%, trading at HKD 4.10; and Cathay Pacific Airways (CPCAY) fell by 2.18%, trading at HKD 12.13.
According to Zhitong Finance, airline stocks continued to decline, with China Eastern Airlines (00670) having accumulated a drop of over 35% within the month. As of press time, China Eastern Airlines fell by 6.07%, trading at HK$3.56; Air China (00753) dropped by 5.16%, trading at HK$4.78; China Southern Airlines (01055) declined by 4.21%, trading at HK$4.10; and Cathay Pacific (00293) fell by 2.18%, trading at HK$12.13.
In terms of market news, recently, due to a significant surge in international aviation fuel prices, several mainstream domestic airlines, including Juneyao Airlines, Changlong Airlines, Spring Airlines, and Xiamen Airlines, have announced increases in fuel surcharges for international routes. A previous research report by China Merchants Securities stated that, according to the current collection mechanism, the coverage rate for aviation fuel costs is relatively high when viewed statically. However, in practice, the formation of actual ticket prices also needs to consider consumer affordability and actual market supply and demand conditions.
Guohai Securities indicated that by 2026, with tighter supply and steady growth in travel demand expected, improved supply-demand dynamics and high passenger load factors will support a recovery in lower airfares, bringing about high elasticity in airline earnings growth. Currently, the aviation industry is under considerable cost pressure due to the rapid short-term increase in oil prices. However, certain hedging measures are alleviating this impact, and the improving supply-demand trend remains intact. The firm expressed optimism about the profit recovery potential driven by an increase in seat revenue.
